Best CTP Car Insurance For Australians

CTP is the most basic level of car insurance for drivers in Australia, and, as the name suggests, is a compulsory component of vehicle registration. It covers the cost of third-party compensation claims, should you or somebody else driving your car cause someone injury or death, in an accident.

Impacted parties can include other drivers, passengers, motorcyclists, cyclists and pedestrians.

CTP insurance can cover the following costs for the impacted party:

• Ambulance services
• Hospital services
• Medical treatment
• Rehabilitation
• Lost income: upper limit is three times average weekly earnings per week
• Ongoing medical care if necessary.

Generally, individuals can claim cover for up to six months, for reasonable and necessary treatment and rehabilitation costs, care for necessary help around the home while recovering and a percentage of their weekly income if they need to take time off work to recover. Compensation may be provided for longer in more serious cases, and if the impacted party dies, the insurer may compensate their relatives.

Drivers who are at fault usually cannot claim CTP benefits for injuries unless their state or territory operates a no-fault scheme.

States and territories with at fault schemes require injured parties to prove someone else is at fault in order to claim compensation. If no one admits fault, the injured party will need to bring a court proceeding against the other party to rule that they are at fault, before they can claim for compensation against that party. Those who are partially to blame for the incident, can claim too, but will likely receive less in compensation. No one can claim where no one is at fault, such as when wildlife on the road causes a collision.

All states and territories offer lifetime support to those with severe injuries, such as spinal cord or traumatic brain injuries, multiple amputations, severe burns and permanent traumatic blindness, regardless of fault. This support is designed to cover ongoing treatment, rehabilitation and care, subject to terms and conditions, and is usually offered through a state-specific scheme. For example, South Australia operates a scheme called Lifetime Support, while in New South Wales and the Australian Capital Territory, it’s known as Lifetime Care and Support. There is also the National Injury Insurance Scheme Queensland (NIISQ), and Catastrophic Injuries Support (CIS) in Western Australia. Tasmania offers ‘Daily Care’ support in such circumstances.

CTP only covers those who are injured or killed in an incident. You’ll need to take out one of the following car insurance policies, if you want cover for vehicles, property theft or damage:

• Third party property insurance: covers damage caused to others’ property, including vehicles, as a result of an accident where you’re at fault.
• Third party property, fire and theft insurance: pays out for damaged property, and if your vehicle is stolen or damaged by fire.
• Comprehensive insurance: covers repairs to your vehicle and others’ vehicles, even when the accident is your fault. It also pays out if your car is stolen or damaged by fire, flood or vandalism.

If you choose to purchase one of the above forms of cover, it would need to be in addition to CTP insurance. Only CTP is obligatory, the other forms of insurance are optional.

Depending on where you live, the cost of CTP insurance may be included with your registration fee, or you may have to pay for it separately. Also, in certain locations, you will be signed up to the sole insurer available, while in others, there’s a choice of a number of government-approved CTP insurers.

Some states and territories offer a ‘no fault’ CTP scheme, which can pay out benefits to any individuals who have been injured in an accident, regardless of fault, while others generally compensate those who are not at fault.

You can check how CTP works in your state or territory below:

New South Wales

If you’re in New South Wales, you’ll need to take out CTP insurance, known within the state as a Green Slip, before registering your car. As New South Wales offers a no-fault Green Slip scheme, drivers who have been involved in an accident where they are at fault, as well as individuals who are not at fault, can claim benefits. Six-month and annual policies are available from the following providers: YOUI, QBE, NRMA, GIO, AAMI and Allianz.

You can compare quotes online by entering your licence plate number and registration number into the NSW premiums calculator. If you don’t have this information to hand, you’ll be asked more questions about you and your vehicle in order to view tailored quotes.

Before choosing an insurer, you can also find information on how each is performing on the State Insurance Regulatory Authority’s website, New South Wales’ official supervising body for CTP insurers. This information is also helpful for claimants, providing an idea of what to expect from the insurer they are dealing with. It includes the number of customer complaints the insurer has received, the percentage of claims each insurer has accepted for statutory benefits and the average length of time injured claimants have had to wait from lodging a claim to receiving their first income support payments.

Queensland

Queenslanders have a choice of three CTP insurance providers after RACQ stopped offering new CTP insurance policies on 1 October 2023. They are: QBE, Allianz and Suncorp.

The car dealer selling you the vehicle will typically organise the CTP cover along with registration. Alternatively, you can complete the process at a transport and motoring service centre, or visit a Magistrates Court, QGAP office, or local police station that provides car registration services, if you live in a rural area. It’s best to call beforehand to confirm they provide the service so as not to waste your time.

While Queensland offers at fault cover as standard, it also offers an optional Driver Protection cover add-on, which specifically provides drivers with a set payment if they are injured in an accident where they are at fault. However, they must have sustained the specific injuries stated as covered by the insurer. You can compare insurance quotes online for policy terms of one, three, six or 12 months.

South Australia

Since July 2019, drivers in South Australia have been able to choose between several government- approved CTP insurers when renewing their cover. This encourages insurers to compete for business based on competitive pricing and service, as is the case in certain other states and territories. There are now five CTP insurers serving South Australia: AAMI, Allianz, NRMA, QBE and Youi.

Drivers can compare quotes using the SA’s CTP Insurance Regulator calculator. They will also be able to view the service rating for each insurer after running a quote. Drivers are automatically allocated one of the above CTP insurers on purchasing a vehicle, and payment for CTP insurance and registration of the vehicle are taken at the same time. The price of cover will be the lowest offered at time of registration for the vehicle type.

Drivers who are solely responsible for an accident are not eligible for cover under an South Australia policy. However, they can use Medicare where possible or make a private health insurance claim. Serious injuries to the brain and spinal cord, amputations, burns and blindness may qualify a driver for cover under the Lifetime Support Scheme.

Australian Capital Territory

The Australian Capital Territory’s Motor Accident Injuries Commission operates an at-fault system as standard, requiring drivers to purchase Motor Accident Injuries Insurance (MAI) which comprises CTP cover and lifetime care and support. Drivers can choose from four providers: NRMA, GIO, AAMI and Apia, when registering a vehicle.

While the CTP insurance protects solely those who are not at fault, the Lifetime Care and Support Scheme, is a compulsory component of the cover and protects everyone, even the at fault party, if they’ve suffered catastrophic injury. Optional personal accident cover can be added to the policy for injuries where no one was at fault, or you were found to be at fault.

Western Australia

Drivers must pay for motor injury insurance, provided solely by the Insurance Commission of Western Australia, with their rego. This insurance consists of two elements, CTP insurance, which only covers those injured or who have died and were not at fault, and catastrophic injury support insurance, which covers life-changing injuries, regardless of who is at fault.

Drivers can choose motor injury insurance for a period of three, six or 12 months and have the freedom to change the term-length each time they renew their licence, if they wish. An easy way to renew registration in WA is online. If you choose the three-month option, you have to pay online or over the phone, otherwise you can alternatively visit a Department of Transport Driver and Vehicle Services Centre. Those registering a vehicle for the first time, you will need to go to a service centre.

Tasmania

Tasmania offers one of the most competitively priced CTP cover in Australia, via the state’s Motor Accidents Insurance Board (MAIB) no-fault scheme. The CTP premium is included in your registration fee, and depends solely on your vehicle’s class.

Victoria

CTP, or the Transport Accident Charge, as it is known in Victoria, is purchased along with vehicle registration in this state, for a three, six or 12-month term. There’s only one CTP insurer in Victoria: the state’s Transport Accident Commission. Drivers can renew their registration along with their CTP online.

Northern Territory

CTP is included as part of your car registration fee in the Northern Territory. As the Territory Insurance Office is the single insurer, drivers do not have the option to choose a deal.
The Northern Territory’s Motor Accidents Compensation scheme is a no-fault scheme,which means it does not require the injured party to prove someone else is at fault to make a valid claim.

While rego can be purchased for one, three, six or 12 months, it works out cheaper when bought for 12 months. You can renew your registration online for your desired term length via the MVR Quickpay website.

Certain jurisdictions offer the same price for CTP insurance for vehicles of the same class.
As with other types of car insurance, CTP providers in other jurisdictions consider the driver’s risk profile, charging more for cover if they deem a driver high-risk. On applying for CTP you therefore will need to provide information such as:

Your age: Younger and newer drivers tend to pose more of a risk on the road, which is usually reflected in higher premiums.

Location: Similar to the type of vehicle you drive, certain areas are known to be more high-risk than others. Rural areas statistically witness more accidents, compared to metropolitan areas.

Vehicle type: Insurers deem certain vehicles more high-risk than others. You’ll find that cars which are used to commute to work, as well as for social purposes, will probably cost more to insure. The same applies to cars of high value, and those that are parked on the road, rather than in a garage or on a drive.

An insurer may also consider factors such as whether you have chosen to take out another form of car insurance in addition to CTP, how you will primarily use your vehicle and whether you’re purchasing a new policy or renewing an old one.

Forbes Advisor ran quotes and consulted the websites of certain jurisdictions to find what the average driver could expect to pay for CTP cover across Australia. The prices below are for annual cover.

New South Wales

Youi: $432
QBE: $433.24
NRMA: $436.28
GIO: $479.24
AAMI: $480.72
Allianz: $481

You can run a quote online by entering your licence plate number and registration number, otherwise you will need to provide additional information. We populated the online tool with the following information:

• Registration due date: 5.2.24
• Vehicle type: Motor car
• Year of manufacture: 2024
• Vehicle shape: 4-wheel drive passenger (PVF)
• Postcode where vehicle is garaged: 1001
• No. of average km travelled each year: Up to 15,000
• Registered to: Individual
• Days used per week to commute: five
• Entitlement to claim ITC on this green slip: None
• Other motor insurance for the vehicle: None
• Other motor insurance for another vehicle: None
• D.O.B: 1.1.1982
• Holder of valid NSW licence: Yes
• Licence of least experienced driver: Open licence (Australian)
• Years least experienced driver has held licence: 6 or more
• D.O.B of youngest driver: Same as above
• Gender: Male
• Accidents by any drivers of car in last 5 years where they were at fault: None
• Licence suspensions, cancellations, disqualifications or restrictions in last 3 years: None
• Convictions or fines imposed for alcohol or drug related driving in last 3 years: None
• Drivers of vehicle with provisional licence: None
• Number of demerits owner/drivers have accrued on their licence: 0
• NRMA membership e.g. for insurance products or roadside assistance? No

Queensland

QBE: $369.60
Suncorp: $369.60
Allianz: $369.60

We populated the online tool with the following:

• Due date shown on your vehicle registration renewal notice: 5.2.24
• Vehicle class: Class 1 (cars and station wagons)
• Input Tax Credit Entitlement (ITCE): None
• Period you want to cover: 12 months

South Australia

AAMI: $269.50
Allianz: $264.62
NRMA: $264.62
QBE: $269.93
Youi: $264.62

We populated the online tool with the following:

• Registration due: 5.2.24
• District: 1
• Vehicle type: Private passenger
• Input Tax Credit Entitlement (ITCE): None

Australian Capital Territory

APIA: $414.20
AAMI: $404.20
GIO: $399.20
NRMA: $390.60

These prices are as stated on act.gov.au, for drivers of passenger vehicles who are not entitled to ITC.

Western Australia

$479.40 for motor car drivers, as stated on wa.gov.au.

Tasmania

$309 for motor car owners since 1 December 2023, according to tas.gov.au.

Victoria

$552.20 High-risk zone
$496.10 Medium-risk zone
$430.10 Low-risk zone

These costs, as stated on the vic.gov.au site, apply to passenger vehicles, depending on whether the owner’s address is deemed high, medium or low risk, according to postcode.

Northern Territory

$669.25 is the registration fee for light vehicles—those with four cylinders and an engine size less than 3000 cc as stated on nt.gov.au. The CTP price is included in this figure.

If your state or territory offers a choice of insurers, you are usually allowed to switch to another provider at renewal, after a three to 12-month period, depending on your insurance term. This means you can run quotes, compare benefits, perks and prices, and choose a better deal.

While you may be able to nominate to change provider at any time, the switch will usually only take effect on renewal of your policy.

If you have been injured in a motor vehicle accident due to the fault (total or partial) of the driver, vehicle owner or another person insured by the at-fault vehicle’s insurer, you can claim CTP compensation.

The process may differ slightly, depending on the insurer but generally, you will need to:

1. Complete and submit the claims form provided by the CTP insurer. Note that there may be a time limit on how long after an incident you can claim.
2. The insurer should contact you within 14 days to let you know if you completed the claims form correctly and whether it will cover your rehabilitation.
3. It will make a decision on liability within a maximum six months of receiving your claim. Less time may be taken for straightforward claims.
4. The insurer will obtain information to help with its assessment of the compensation you need, from your hospital, doctor and employer, for example.
5. Settlement of your claim must be negotiated with the insurer.
6. The claim is settled.